Stay on collection of house tax in private developers’ areas

In an unprecedented move, the Supreme Court on Monday asked the Municipal Corporation of Gurgaon (MCG) not to collect any tax from private developers' areas. The apex court was hearing a PIL filed by the Gurgaon Citizens Council over the imposition of a house tax by the MCG, despite the fact that they already pay maintenance charges to their respective developer's.

Earlier, the Supreme Court had asked MCG to file a reply after the court asked the civic body whether it had given the residents of the said localities an opportunity of personal hearing before the levy of additional tax.

"Since the MCG failed to answer the court's query, the court barred the civic body from collecting any kind of tax from these localities till it files its reply," said Nivedita Sharma, counsel of the GCC, adding that court's direction can be understood as a restriction on the MCG in the property tax matter.

On a query made by the court, the counsel for the MCG made a statement that she will be filing an additional affidavit to answer the issue. Meanwhile, the MCG will not take any coercive steps for municipal dues, reads an official statement.

MCG commissioner Sudhir Rajpal, however, said, "As far as we know, there is no stay. We have only been asked not to take any coercive measures for recovery. I have, however, not seen the judgment."

A group of residents who live in private developers' areas had approached the Supreme Court after the MCG slapped a house tax on them. Residents say they have already been paying maintenance charges to their respective developers.

"Our area is still being maintained by a developer and we pay a fee every month. Why should we pay property tax to the MCG?" asked RS Rathee, GCC president, adding that the bills of the MCG stand illegal.